Whiting Petroleum

History

2020: Bankruptcy

At the beginning of April, 2020 in the USA the oil companies because of the collapse of raw material prices began to go bankrupt. The Whiting Petroleum company developing fields of slate oil in Northern Dakota filed a lawsuit the claim for protection against creditors, having suggested them to convert a debt in the amount of $2.2 billion into 97% of its stocks that actually means impossibility to fulfill the obligations.

Whiting Petroleum stated that it expects adequate liquidity for the purpose of accomplishment of the financial liabilities during restructuring needlessly in additional financing.

In the USA the oil companies because of the collapse of raw material prices began to go bankrupt

The company also emphasized that "in connection with serious drop in oil prices and gas … and COVID-19 pandemic", financial restructuring represents the best way for its development.

Financial problems of the company began for a long time, and by the beginning of April, 2020 they went deep because of drop in oil prices and a pandemic of a coronavirus. Earlier in March Financial Times reported that Whiting Petroleum considers the different possibilities.

Whiting Petroleum noted that "considerable reduction of prices of oil and gas in the light of uncertainty", Saudi Arabia caused by disputes and Russia and also spread of a new coronavirus in the world took place. Stocks of the company after the declaration of bankruptcy fell in price approximately by 45%, up to $0.39 for an action.

Whiting Petroleum is private corporation which independently is engaged in investigation, development, acquisition and oil and gas production. The largest projects of the organization are located on the Bakkenovsky Formation field, near the city of Tri-Forks (State of Montana) and in northeast Colorado. The company under the brand trades in raw materials at the New York Stock Exchange. For March, 2020 price of oil fell from $50 to less than $25 for barrel that made bankruptcy of Whiting Petroleum the only option.^[1]

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